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FARMINGTON, Conn. - Otis Worldwide Corporation (NYSE: OTIS), a global leader in elevator and escalator manufacturing with a market capitalization of $39 billion, announced an increase in its quarterly dividend to $0.42 per share, marking an 8% rise. The dividend is slated for payment on June 6, 2025, to shareholders of record as of May 16, 2025. According to InvestingPro data, the company’s dividend has grown by approximately 15% over the last twelve months, with a current yield of 1.6%.
Judy Marks, Otis Chair, CEO, and President, stated, "We are pleased to announce a dividend increase for the fifth consecutive year, which demonstrates our commitment to creating value for our shareholders through our disciplined capital allocation strategy." She highlighted the company’s dividend growth of approximately 110% since its spin-off in 2020, attributing the success to the robustness of Otis’ service-driven business model. InvestingPro analysis shows the company maintains a strong financial health score, operating with moderate debt levels and generating $1.4 billion in free cash flow over the last twelve months.
Otis, headquartered in Connecticut, USA, boasts a workforce of 72,000 individuals, including 44,000 field professionals. The company is responsible for moving 2.4 billion people daily and maintains around 2.4 million customer units globally, representing the industry’s most extensive service portfolio. With annual revenue of $14.3 billion and a gross profit margin of 30%, Otis operates in over 200 countries and territories, providing products and services to meet a broad range of customer and passenger needs.
The press release also included a cautionary note regarding forward-looking statements related to anticipated earnings, cash flow, and dividends, which involve risks, uncertainties, and assumptions that could cause actual results to differ materially from those expressed or implied. The company emphasized that past dividends do not guarantee future ones, as payment and amounts may vary significantly due to various risks and uncertainties.
Investors are reminded that the information provided is based on a press release statement from Otis Worldwide Corporation.
In other recent news, Otis Worldwide Corporation reported its fourth-quarter 2024 earnings, revealing a slight miss in earnings per share (EPS) compared to analyst expectations. The company posted an EPS of $0.93, falling short of the $0.95 forecast, despite exceeding revenue expectations with $3.68 billion against the anticipated $3.67 billion. Otis Worldwide achieved its highest quarterly adjusted free cash flow since its spin-off, amounting to $682 million, and returned $1.6 billion to shareholders through dividends and share repurchases. In addition to financial results, Otis Worldwide updated its bylaws to streamline governance processes, affecting stockholder meetings and director nominations. These amendments are aimed at providing more flexibility in how stockholders can participate in corporate decisions. The company also introduced new elevator and escalator products in key markets and focused on the transformation of its operations in China. For 2025, Otis projects net sales between $14.1 billion and $14.4 billion, with organic sales growth of 2-4%. The company plans to repurchase $800 million in shares, indicating confidence in its long-term strategy.
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